IndusInd Bank did not disappoint investors. Above-industry loan growth, strong capitalisation, healthy growth in fee income and steady deposit growth sum up the bank’s performance in the latest June quarter.
There was also an uptick in bad loans though, by 20 per cent sequentially, due to two accounts that slipped from the restructured book to bad loans. However, the overall stressed asset book (NPA plus restructured) has remained stable at 1.2-1.3 per cent of loans.
The bank’s provision cover that inched up from 58 per cent in the March quarter to 60 per cent in the June quarter is also a positive. IndusInd’s double-digit loan growth is heartening at a time when the overall industry growth continues to languish at 4 per cent levels. IndusInd continued its good run, with profit growing by 26 per cent y-o-y in the latest June quarter. The predictability in earnings has kept investor interest up in the stock.
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